SCHEDULES
SCHEDULE 15 Exchange gains and losses: alternative calculation
Exempt circumstances
2
1
Regulations may provide that where—
a
as regards an asset, liability or contract an initial exchange gain or initial exchange loss accrues to a company for an accrual period under section 125, 126 or 127 of this Act or would so accrue apart from regulations under this Schedule,
b
at any time on a day in the period the asset or contract was held, or the liability was owed, by the company in exempt circumstances, and
c
such other conditions as may be prescribed are fulfilled,
the amount of the gain or loss shall be found in accordance with the alternative method of calculation.
2
Regulations may also provide that as regards any such day as is mentioned in sub-paragraph (1) above the accrued amount shall be ascertained in accordance with prescribed rules.
3
Regulations may be so framed that the accrued amount as regards a day depends on the extent to which an asset or contract is held, or a liability is owed, in exempt circumstances.
4
For the purposes of this paragraph an asset or contract is held, or a liability is owed, in exempt circumstances at a given time if it is then held or owed—
a
for the purposes of long term insurance business;
b
for the purposes of mutual insurance business;
c
for the purposes of the occupation of commercial woodlands;
d
by a housing association approved at that time for the purposes of section 488 of the Taxes Act 1988;
e
by a self-build society approved at that time for the purposes of section 489 of that Act.
5
In this paragraph—
“long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the M1Insurance Companies Act 1982;
“commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.